USDT dominance chart resembles pre-altcoin rally patterns

RSI breakdown suggests declining strength in USDT hold. Ascending broadening wedge points to bearish sentiment.

Crypto traders are keeping a close eye on USDT dominance, which could be hinting at another altcoin rally.

Earlier in October 2024, a decline in USDT dominance was one of the main signals before a huge move in altcoins.

Now, technical indicators are again lining up for a shift in market sentiment.

One of the most crucial indicators, RSI (Relative Strength Index), has broken to the downside, which often indicates a loss of momentum in the current trend.

This could suggest that traders are shifting away from stablecoins like USDT and back into more volatile assets—likely altcoins.

When RSI trends break ahead of price action, it’s often a precursor to bigger moves. In this case, if price follows RSI (as it often does), we could see USDT dominance fall further—paving the way for capital to flow into altcoins.

#Altcoins When I look at the USDT Dominance, I can see a very similar picture to that of October 2024, shortly before we saw a massive altcoinrally.Trend in RSI is already broken to the downside. Price action usually follows.Ascending broadening wedge is also very bearish pic.twitter.com/THUwTDINbV

— 𝕄𝕠𝕦स्ताच्헤 (@el_crypto_prof) May 3, 2025

Moreover, the presence of an ascending broadening wedge on the USDT dominance chart could be another sign.

This pattern, while less common, is typically bearish and signals a market that’s climbing with uncertainty and wide volatility, often seen before a sharp correction.

For traders focused on altcoins, this is a signal they've been waiting for. A drop in USDT dominance usually means traders are converting their stablecoins into higher-risk tokens—the fuel for massive rallies.